Microsoft Finally Reveals Azure Revenue: $33.2 Billion

For years Microsoft told us Azure was growing fast without ever saying how big it actually was. That ended on October 28. In its first earnings report for fiscal 2027, Microsoft finally put a dollar figure on its cloud: $33.2 billion in a single quarter. The same report shows Windows and Xbox going the other way.

What happened

Microsoft's earnings release covers July to September 2026. Revenue came in at $92.3 billion, up 19% on a year earlier, and net income was $36.6 billion. TechCrunch was quick to point out on X that this is the first time Azure revenue has been shown in dollars, and the release's product table lists it at $33,165 million, up 48% from $22,384 million.

That disclosure is a side effect of a reorganised report. Microsoft has dropped its three old segments and now reports just two:

• Agents and Infra (Azure, Microsoft 365, server products): $76.8 billion, up 25%.
• Devices and Consumer (Windows, Xbox, Surface, search and ads): $15.5 billion, down 3%.

Inside that second group, Windows OEM and devices revenue fell 22% to about $3.55 billion. Xbox content and services slipped 2%. According to The Verge's write-up of the earnings call, Xbox hardware was down 14%, and CFO Amy Hood expects Windows OEM revenue to drop again next quarter, by somewhere in the mid-30s percent.

Why it matters

The Azure number lets people compare clouds directly at last. Alphabet reported the same day, and TechCrunch notes that Google Cloud made $30.7 billion, so Azure is slightly bigger even though Google's cloud is growing roughly twice as fast. Amazon reports AWS figures on Thursday.

The PC side is grimmer, and it's the part that hits ordinary buyers. Microsoft blamed the Windows drop partly on last year's Windows 10 end-of-support rush, which pulled upgrades forward, and partly on a weak PC market. The Verge ties that weakness to the memory shortage people are calling RAMageddon, which has pushed laptop prices up across the board. When the company that sells Windows says it expects another steep drop, I don't think PC prices are coming down anytime soon.

On Xbox, Microsoft still won't share Game Pass subscriber numbers. The last official figure, 34 million, is more than two years old.

What to do

• Buying a PC soon? Don't hold out for big price cuts. If you find a laptop at a fair price with enough RAM for the next few years, I'd take it now rather than wait.
• Running workloads on Azure or Google Cloud? Nothing changes on your bill today. But Microsoft spent $39.4 billion on property and equipment this quarter, about double the $19.4 billion a year ago, and that money has to be earned back somewhere. Check your reserved-instance and savings-plan terms before renewal season.
• Xbox players: Hood expects content and services revenue to grow again next quarter, so Microsoft is betting on games and subscriptions rather than console hardware. Hood also expects hardware revenue to fall again.

This report also lands in the same week Microsoft offered voluntary buyouts to staff, so the record profit and the cost-cutting are happening at the same time.